INSIGHTi

Selecting a New WTO Director-General:
Implications for the Global Trading System

July 20, 2020
The United States and members of the World Trade Organization (WTO) face selection of new leadership
for the WTO Secretariat, following Director-General (DG) Roberto Azevêdo’s unexpected announcement
that he will resign at the end of August 2020, a year before his term’s end. Eight candidates are in the
running; the process requires all 164 WTO members to agree by consensus on the new DG appointment.
WTO members and observers view the outcome of the DG race and fresh leadership as important to inject
new momentum into the institution, amid efforts to salvage its relevance and chart a path forward. In the
current race, analysts have variously called for an “honest broker” and dealmaker, politician over
technocrat,
or a “peacekeeper.” WTO leadership may be particularly critical at this juncture, given
members’ divergent views over needed reforms and new rules, a nonfunctioning dispute settlement
system, and a recent spike in unilateral trade actions, which threaten the organization’s legitimacy. The
intensive selection process, usually lasting nine months, has been expedited to conclude possibly by early
November following the U.S. presidential election.
The WTO and global trading system face significant challenges. The WTO’s credibility hinges on the
conclusion of outstanding negotiations, set back by the postponement of the 2020 Ministerial Conference,
due to the Coronavirus Disease 2019 (COVID-19) pandemic. Meanwhile, a dispute settlement crisis
continues and broader WTO reforms remain under discussion, complicated by wide differences, growing
trade disputes, and unilateral trade actions. In the near-term, WTO members face additional challenges in
responding to the global trade and economic slowdown and spread of trade restrictions in response to
COVID-19. In the words of the outgoing DG: “The challenges facing the work of this Organization will
always be formidable — commensurate with its relevance and role as an anchor of predictability and
certainty in a fast-changing global economy.”
Debate over the WTO’s future direction is of interest to Congress. Some Members have expressed
support for ongoing WTO reform efforts (H.Res. 746) and advocated for an active U.S. leadership role
(S.Res. 651). In May, Senator Hawley and Representatives DeFazio and Pallone introduced joint
resolutions
(S.J.Res. 71, H.J.Res. 89) proposing to withdraw congressional approval of WTO agreements;
rule changes may prevent votes from occurring.
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The Role and Selection of the DG
Since the WTO is member-driven, the Secretariat headed by the DG has no decision-making powers. Its
primary role is to provide technical and professional support to members on WTO activities and
negotiations, monitor and analyze global trade developments, and organize ministerial conferences.
Notwithstanding the lack of formal power, the DG is an advocate for the trading system and often wields
“soft power,
” relying on diplomatic and political heft in helping members build consensus or break
stalemates—an increasingly difficult task. Some argue that the Secretariat should be granted more
authority to table proposals and advance new rules.
The WTO General Council (GC), comprised of members, adopted the current DG selection procedures in
2002. The DG typically serves a four-year term, with possible reappointment. DG qualifications broadly
include “extensive experience in international relations, encompassing economic, trade and/or political
experience; a firm commitment to the work and objectives of the WTO; proven leadership and managerial
ability; and demonstrated communication skills.” The eight candidates in 2020 have a breadth of
experience (Table 1). A recent survey suggests management and political experience, economics training,
and WTO negotiating experience are preferred characteristics. Experts speculate that Nigeria’s Ngozi
Okonjo-Iweala and Kenya’s Amina Mohamed currently lead the field.
WTO DG appointments generally have alternated between developing and developed countries, and have
hailed from all regions except Africa, the Middle East and North America—regions home to five current
candidates. With Azevêdo from Brazil, some developed countries view it as their moment, while African
countries strongly argue it is their turn. No female has ever served as DG, and some are now calling for
that to change.
DG candidates met (in person or virtually) with WTO members from July 15-17 to present views and
answer questions. This campaign phase, expected to last through September 7, is followed by
consultations among members over two months to narrow the field and build consensus around a
candidate; as leading candidates gain traction, others are expected to withdraw. A selection committee
leads this process, headed by the GC Chair. The committee then issues its recommendation on the
candidate most likely to gain consensus, and members make their final decision. (In the (rare) absence of
consensus, procedures specify that as a last resort there can be recourse to other voting procedures.)
Table 1. WTO DG Candidates
Candidate (by order of
announcement)

Country
Background and Key Positions
Jesús Seade Kuri
Mexico

Foreign Affairs Under Secretary for North
America

Former Deputy DG of the WTO

Former Deputy DG of the GATT
Ngozi Okonjo-Iweala
Nigeria

Former Finance Minister

Former Managing Director World Bank
Abdel-Hamid Mamdouh
Egypt

Senior Counsel, King & Spalding LLP

Former WTO official
Tudor Ulianovschi
Moldova

Former Foreign Minister

Former Ambassador to WTO
Yoo Myung-hee
South Korea

Trade Minister
Amina C. Mohamed
Kenya

Secretary for Sports, Culture and Heritage

Former Foreign Affairs and Trade Minister; Chair
of 2015 WTO Ministerial Conference

Former Deputy Secretary-General United Nations


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Candidate (by order of
announcement)

Country
Background and Key Positions
Mohammad Maziad Al-Tuwaijri
Saudi Arabia

Royal Court Adviser

Former Economy and Planning Minister

Former Banking Executive
Liam Fox
United Kingdom

Former Trade Secretary
Source: WTO, “Candidates for DG selection process 2020.”
What’s at Stake
DG Azevêdo was motivated to resign early to prevent the DG selection from coinciding with the
rescheduled 12th WTO Ministerial Conference (MC12) in 2021, potentially diverting political attention
from achieving critical outcomes. It would also allow the incoming DG to better shape the strategic
direction for MC12. During Azevedo’s tenure, WTO members advanced some important achievements,
like the Trade Facilitation Agreement, but made little progress on resolving major issues leftover from the
Doha agenda and advancing new priorities. MC12 stakes are high, with final agreements pending on
longstanding priorities like fisheries subsidies, and ongoing plurilateral talks, including on e-commerce.
Many have also urged the WTO to tackle some of the trade policy challenges that emerged from COVID-
19.
Members also confront reforming the WTO, a difficult process but highly consequential for the
institution’s continued relevance. U.S. priorities include reform of the treatment of developing country
status, notification and transparency requirements, and disciplines on nonmarket economies. Meanwhile,
trade disputes have accelerated between the United States and China, countries have increasingly resorted
to unilateral punitive trade actions (the subject of WTO disputes), and, more broadly, protectionist trade
policies are rising, which undermine the spirit and letter of WTO rules. WTO dispute settlement,
generally considered a success of the system, is unable to function fully, amid sharp disagreements over
the Appellate Body’s (AB) role. New WTO leadership will face ushering the trading system through these
various challenges.
U.S. Perspectives
In June testimony to House Ways and Means, U.S. Trade Representative (USTR) Lighthizer called the
WTO “a mess,” an institution that has failed the United States and the global trading system. The Trump
Administration has widely documented its concerns in its trade policy agenda and AB critiques.
Regarding ideal qualities for a DG, Lighthizer has called for leadership that supports fundamental, across-
the-board reform and understands the nature of problems facing market economies in dealing with China
and current rules that fail to discipline large state-run economies. He noted that any “whiff of anti-
Americanism” would be grounds for a U.S. veto.




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Author Information

Cathleen D. Cimino-Isaacs

Analyst in International Trade and Finance




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